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Africa urged to attract private finance for infrastructure

29th March 2019

By: Tasneem Bulbulia

Deputy Editor Online

     

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Further investment in infrastructure development could play a significant role in helping Africa eradicate poverty, strategic adviser and former UK International Development Secretary of State Douglas Alexander said at Pinsent Masons’ inaugural Africa Infrastructure Conference, in Johannesburg.

He emphasised that infrastructure development in Africa had been too slow to ensure African countries reached their economic growth targets and eradicated poverty. Africa needed to attract more private capital for infrastructure development, as the considerable infrastructure financing gap was growing.

He also urged African countries to use their limited resources wisely and strategically, such as on investing in the maintenance of existing infrastructure.

University of Cape Town African Centre for Cities’ Dr Gareth Haysom, meanwhile, agreed that infrastructure development was critical to spurring growth in Africa.

Moreover, he said the infrastructure built in African cities in the next decade would shape these cities for the next 100 years.

Haysom challenged the perception that population growth in African cities was predominantly the result of rural migration, stating that, while this did occur, much of Africa’s urban growth stemmed from natural growth, with cities characterised by very young populations.

This youth bulge had implications for urban development, such as demand for education, new forms of education and new types of technology, as well as presenting new ways in which citizens used cities.

He also challenged the perception that African cities were largely poor, with many boasting an emerging middle class. However, this growth was precarious, which could challenge the provision of infrastructure, he said.

While there still were high levels of poverty in many African cities, this did not affect the ability and willingness of citizens to pay for services, with many poor households actually paying more for services than those living in wealthier neighbourhoods.

Another perception dispelled was that there was a clear divide in African cities between the formal and informal. Haysom indicated that the line between the two was actually blurred in many cities, with most informal activities linked to formal activities.

Therefore, he emphasised that forward and backward linkages between formal and informal activities were essential for the functioning of cities, which could guide how infrastructure was developed.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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